(1) Add the following appropriately numbered ARTICLE to the bill and renumbering subsequent ARTICLES and SECTIONS of the bill accordingly:

ARTICLE ___. INDUSTRIALIZED HOUSING

SECTION ___.01. Section 1202.155, Occupations Code, is amended by adding Subsection (c) to read as follows:

(c) Notwithstanding Subsections (a) and (b), the commission by rule may adopt another method of indicating that the designs, plans, and specifications of industrialized housing and buildings satisfy the requirements of Subsection (a)(1) and are approved in accordance with Subsection (a)(2) if the study conducted under Section 1202.1551 recommends the method.

SECTION ___.02. Subchapter D, Chapter 1202, Occupations Code, is amended by adding Section 1202.1551 to read as follows:

Sec. 1202.1551. STUDY CONCERNING APPROVAL OF DESIGNS, PLANS, AND SPECIFICATIONS. (a) The council shall conduct a study to:

(1) evaluate the current method of indicating approval of designs, plans, and specifications of industrialized housing and buildings under Sections 1202.155(a) and (b); and

(2) identify and evaluate methods of indicating approval of designs, plans, and specifications of industrialized housing and buildings that are alternatives to the method described by Subdivision (1).

(b) The study may recommend for adoption by the commission an alternative method identified under Subsection (a)(2) if the council determines that the method would:

(1) ensure that the designs, plans, and specifications of industrialized housing and buildings:

(A) meet or exceed the code standards and requirements under council interpretations and instructions; and

(B) are approved by the department or an approved design review agency; and

(2) be more efficient and cost-effective for the department or approved design review agencies.

SECTION ___.03. Subsection (a), Section 1202.252, Occupations Code, is amended to read as follows:

(a) A municipality that regulates the on-site construction or installation of industrialized housing and buildings may:

(1) require and review, for compliance with mandatory building codes, a complete set of designs, plans, and specifications approved by the council [~~bearing the council's stamp of approval~~] for each installation of industrialized housing or buildings in the municipality;

(2) require that all applicable local permits and licenses be obtained before construction begins on a building site;

(3) require, in accordance with commission rules, that all modules or modular components bear an approved decal or insignia indicating inspection by the department; and

(4) establish procedures for the inspection of:

(A) the erection and installation of industrialized housing or buildings to be located in the municipality, to ensure compliance with mandatory building codes and commission rules; and

(B) all foundation and other on-site construction, to ensure compliance with approved designs, plans, and specifications.

(2) Add the following appropriately numbered SECTION to ARTICLE 6 of the bill and renumbering subsequent SECTIONS of the ARTICLE accordingly:

SECTION 6.___. Not later than September 1, 2012, the Texas Industrialized Building Code Council shall complete the study required by Section 1202.1551, Occupations Code, as added by this Act.

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